Entrepreneur and investor Chamath Palihapitiya has sounded the alarm on California’s growing political and financial troubles. He says that many top companies and founders are leaving the state, causing huge losses in tax revenue. According to Palihapitiya, this damage could exceed $200 billion as these firms expand in other states. Palihapitiya points to Elon Musk as a key example. Tesla and SpaceX, two of Musk’s companies, moved important parts of their business from California to Texas. He traces this shift to tensions during COVID-19 lockdowns, which showed California's political climate becoming unfriendly to big innovators. He recalls a 2020 incident when California lawmaker Lorena Gonzalez used harsh language against Musk over pandemic rules. Musk replied with “Message received,” highlighting a deep rift between California’s leaders and successful businesses. The $200 billion figure is Palihapitiya’s estimate of lost income, capital gains, and corporate taxes due to these departures. He believes the number will grow, especially if SpaceX goes public outside California. Palihapitiya says California's leaders missed chances to work better with innovators, which could have boosted tax income and helped public budgets. Beyond money, he criticizes California for poor financial management and overspending. Instead of reforming, the state tries to raise more money from those who stay. He warns that continued exits of key businesses could cause deep financial trouble and job losses in the next decade. Palihapitiya’s remarks caught the eye of politicians like Senator Ted Cruz of Texas, who invited him to move and praised Texas as a friendly place for business and low taxes. Reactions are mixed. Some agree Palihapitiya exposes a real crisis driven by high costs and bad policies. Others say Musk’s move was due to personal reasons and that tax losses are overstated. The debate now tests how California balances rules, taxes, and innovation. It shows what the state risks losing if it cannot keep its top companies and jobs.